by terrorists with links to al qaeda. it has been a day of chaos, details still pouring in about a deadly rescue operation, helicopters circling overhead and a frightening scene below. it happened in the north african nation of algeria and abc's chief global affairs correspondent martha raddatz spent the day with the defense secretary, leon panetta, in italy, as he was tracking every new development. martha? >> reporter: diane, this situation is very fluid, but reports we are getting tonight about the raid are very ominous. a u.s. official telling me tonight there were ten americans at the field, five are safe. but the fate of the other five, we do not know. what is clear tonight is that this is far from over. with algerian forces now surrounding the complex, the british prime minister is warning that this raid could end in even more bloodshed. >> it is a very dangerous, very

uncertain, a very fluid situation and i think we have to prepare ourselves for the possibility of bad news ahead. >> reporter: the worst, coming after the algerian military moved in with helicopters, reportedly fearing the hostage takers were going to escape. the terror group was holed up in the natural gas plant along with their hostages, the americans and other workers from britain, france, japan and norway. some reportedly forced to wear explosives around their necks. tonight, algeria is saying the raid left not only some of the militants dead, but some of the hostages, as well. but it is not clear how many. and the battle is ongoing. a u.s. official saying tonight it is believed that between 15 and 20 hostages still remain inside. the militants say this is in retaliation for the french-led assault against islamic rebels in the nearby country of mali. today, the secretary of defense,

monitoring developments here in italy, spoke to us exclusively. >> i don't think there's any question that based on what we do know that this was a terrorist act and that the terrorists have affiliation with al qaeda. >> reporter: but secretary panetta told us that the rest of the information coming from algeria is murky. >> we're going to look at what the situation is, how best to address it, how can we bring our military assets to bear in order to deal with it. >> reporter: we do know that one irish citizen, stephen mcfall, escaped the complex. he talked to his family afterwards. >> just really excited. can't wait until he comes home. >> reporter: an official tells us tonight, a u.s. surveillance drone has moved over that field to try to get more clarity. what other military assets may be used, day athey are keeping

secret, for good reason. they don't want to put those remaining hostages in harm's way including those five americans. diane? >> all right, martha. and as you continue to follow the details from your post with the secretary of defense, we do know here that at the heart of the hostage crisis is a shadowy figure, a renegade terrorist deploying new tactics. abc's chief investigative correspondent brian ross is back on that part of the story tonight. >> reporter: almost overnight, 40-year-old mohktar belmokhtar has become one of the most wanted terrorists in the world, >> any time americans are taken hostage, the man behind the hostage-taking becomes a well known household name. >> reporter: the suspected mastermind of the algerian attack is believed to have run the operation from his safe haven, 1,000 miles away across the sahara desert in the country of mali. and now, the u.s., england and france are setting their sights on the one-eyed belmokhtar and his rogue group of al qaeda fighters. >> these are very experienced desert fighters. they've been at it a long, long time. >> reporter: one of his recent

kidnap victims, u.n. diplomat robert fowler of canada, held for four months until freed in 2009, says he dealt directly with belmokhtar. >> he's very, very cold. very business-like. very focused. >> reporter: and someone, fowler says, who clearly targets americans and other westerners. >> brian, i cannot tell you the extent to which they hate us. they believe we are evil incarnate. they believe the west is one great sodom and gomorrah. >> reporter: which is why the emergence of belmokhtar and other groups claiming a connection to al qaeda has led to u.s. and french military action in unstable african countries that were never before seen as terrorism threats. >> when this incident is finally over, we know we face a continuing, ongoing problem. >> reporter: the problem, the fear is that africa could turn into a new afghanistan, where al qaeda can establish training bases and plan new attacks

against the u.s. and europe, diane. >> and there can't be enough security to protect all the workers there. >> reporter: exactly right. very frightening situation. >> all right, brian. i know you'll bring us the latest news as you receive it. and now, back here at home, we move onto the news today about your money. the dow, on a rocket ride today, hitting a five-year high, partly buoyed by a big new housing report. we learned today that last month, new homes were built at the fastest rate in 4 1/2 years. and abc's linsey davis learned of one idea fueling that surge. a new kind of home for modern american families, with room for everyone. >> reporter: it's the in-law apartment on steroids. the home of the future might look something like this. this. or even this. new construction built to accommodate moms and dads, their older kids and aging parents. >> one out of every three homes

we're selling in these communities are the next gen homes. >> reporter: this family found it cost effective, with their older son and mom returning to the nest. >> i have the sense of independence and i have my own place, where i can come and go. i love it. >> reporter: they are part of a growing trend. in 2010, nearly 4.5 million homes reported three or more generations living in them. a 30% increase from ten years earlier. but not everyone can afford to buy a new house. modular additions to existing homes like this are putting money back into the housing market and saving families big bucks. >> everybody seems to be blending in and melding nicely and -- >> reporter: it's all working. >> yeah. >> reporter: one big happy family. three generations of murphys all live here under the same roof. it's just the blueprint that's changed. you wouldn't even know that this is not part of the original house. check out this prebuilt room and bathroom added to the back of their house in just eight weeks, for less than half the cost of building an addition. socorrito baez-page had the same

idea for her mother viola, but she chose to have this cottage delivered straight to her backyard. >> she's used to having all of her family around her. >> reporter: a growing niche, helping to rebuild the american housing market. linsey davis, abc news, new york. and now, we want to tell you about the winter blast hitting the southern united states, wreaking havoc on highways. in effect, the weather is upside down on the weather map tonight. normally temperate southern cities, places like jackson, mississippi, are facing more snow than chicago. and abc's meteorologist ginger zee is tracking that. >> reporter: it's the first winter storm of the season for many in the south. and it's been a disaster on the roads. in mississippi, up to half a foot of snow fell in some places, making it nearly impossible to drive. the snow caused dozens of accidents from alabama to west virginia. >> i feel like we're not prepared for it, like most other states.

>> reporter: in eastern tennessee, the fresh winter white slowed traffic to a crawl. students at the university of alabama turned the rare scene into a campus-wide snowball fight. >> i'm from tuscaloosa, alabama, so, i'm not used to the snow. i'm used to sun. >> reporter: tonight, winter weather advisories and winter storm warnings stretch from the carolinas through maryland. areas like raleigh, north carolina, could pick up more than three inches of snow. now, this much snow in that part of the south is a big deal. you're about to see some fun video from brandon, mississippi, where they picked up just about an inch and a half of snow. having a lot of good times with that. but this is, overall, in the season, about two times what they normally see, diane. and places like callman, alabama, who got four inches, now almost four times what a city like chicago has had this season. >> four times chicago? >> reporter: four times. >> all right, thank you, ginger. as we said, it's upside down out there tonight. and now, all day today, everyone was following the new twists and turns in the story we first brought you last night.

what really happened to manti te'o, the college football star whose personal story of strength and sadness inspired so many people, until they learned that the dying girlfriend didn't really exist. abc's josh elliott now with the latest in this puzzle and secrets. >> reporter: until wednesday afternoon, there were no public questions about the heart or soul of star notre dame linebacker manti te'o, a devout mormon, hailing from a large, close-knit hawaiian family. but it's that heart that school officials, and te'o himself, now say was exploited in a cruel and elaborate hoax. >> he is a guy who is so willing to believe in others and so ready to help. >> reporter: but was te'o really duped into believing that he was having an online love affair that would turn tragic? he called lennay kekua the love of his life, saying her death had happened within hours of his grandmother's, one day before the big game. a narrative he was all too

willing to share, openly and in apparent pain. >> when you have somebody that you talk to every single day, that you sleep with on the phone, because she's -- she's going through a lot of things, and all of a sudden, it's silence. that silence really eats at you. >> reporter: we now know that lennay kekua never existed, and glaring questions still remain. notre dame officials say the relationship was exclusively online. so, why then did te'o's father reportedly tell one paper his son had met kekua years ago after a game at stanford, and that they'd spent time together in hawaii? and why, even after te'o informed school officials of the hoax back in december, did no one set the record straight? while across social media and the twitterverse, the mystery spawned a new meme. te'o-ing. people posting pictures embracing imaginary friends. but from te'o, seen here today, nothing but silence.

a young man, about whom we once seemingly knew so much and now, about what matters most, seemingly nothing at all. and the real question is the simplest of all. why? why perpetrate so staggering a hoax with nothing seemingly to gain? and until manti te'o shares his side, diane, of a story as bizarre as any i can remember, that, it appears, is all we're going to have. questions. >> and getting more bizarre with every hour that passes. >> reporter: indeed it is. >> thank you, josh, great to see you here tonight. >> reporter: and you. and, one more note tonight. the world will hear lance armstrong's confession to oprah winfrey. but even before the details emerge from that interview, another blow for armstrong today. olympic officials stripped him of the bronze medal he won at the olympic games in sydney, australia, in 2000. and still ahead here on "world news," imagine waking up during surgery, feeling everything, but you can't say a word. tonight, hope for thousands of people, a breakthrough idea to keep it from happening to you.

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26,000 americans every year. abc's chief medical editor dr. richard besser shows us something that could mean the nightmare could be over. >> reporter: her eyes were closed. body unable to move. but angela was conscious, on the operating table. >> it was like a searing pain. i felt like i was being burned. >> reporter: an emergency c-section, under general anesthesia. doctors had no way to know she could feel everything. >> as awake as i am right now. >> reporter: and having surgery? >> and having surgery. both with feeling and sensation except i was paralyzed. >> reporter: she experienced anesthesia awareness. it's more common in women and runs in families. and for every 1,000 patients who are under general anesthesia, roughly one or two will be aware. it happens because anesthesia is really more an art than a science. a forest of beeping monitors can't always tell a doctor if a patient is truly unconscious. >> a way to inject a little current -- >> reporter: the new issue of

"the atlantic" on stands today reports on what may be a breakthrough. a new approach that could monitor consciousness itself. >> you don't want the patient to move, to feel any pain, to have any memory. >> reporter: dr. giulio tonino's work looks at the brain. his theory? all the electrical signals -- sight, sound, pain, spreading across the brain -- creates consciousness. think of it as flipping a light switch, with light spilling into all the rooms of your brain. in surgery, anesthesia closes the doors, the lights, the electrical signals can't spread. that's when you are truly unconscious. tonino's new awareness monitor stimulates the brain with an electric current to see if it spreads. a truly unconscious brain would have no reaction. a brain conscious during surgery would. >> you're actually injecting current to the brain and finding out whether the various parts of the brain are talking to each other or not. >> reporter: it would mean doctors could finally stop the sort of horror that happened to angela. >> it's a frightening experience. it really does affect somebody's life a great deal.

>> reporter: dr. richard besser, abc news, new york. >> could be something truly new. and, coming up next, can you tell what is different about the first lady, on this, her birthday? lorone, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping;

and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. to the best vacation sp(all) the gulf! it doesn't matter which of our great states folks visit. mississippi, alabama, louisiana or florida, they're gonna love it. shaul, your alabama hospitality is incredible. thanks, karen. love your mississippi outdoors. i vote for your florida beaches, dawn. bill, this louisiana seafood is delicious. we're having such a great year on the gulf, we've decided to put aside our rivalry. now is the perfect time to visit anyone of our states. the beaches and waters couldn't be more beautiful. take a boat ride, go fishing or just lay in the sun. we've got coastline to explore and wildlife to photograph. and there's world class dining with our world famous seafood. so for a great vacation this year, come to the gulf.

its all fabulous but i give florida the edge. right after mississippi. you mean alabama. say louisiana or there's no dessert. this invitation is brought to you by bp and all of us who call the gulf home. five days later, i had a massive heart attack. bayer aspirin was the first thing the emts gave me. now, i'm on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. [ woman ] learn from my story. mommy's having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could've had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle. and now, did you see these pictures today? they top our "instant index" tonight. postcards from the edge of space. thanks to astronaut, amateur photographer tom marshburn.

he says this is what he sees through his window at the international space station. cabo, in mexico. oregon. and australia. he tweets, "you can always tell you're over australia by the brilliant brick red color." and talk about beginner's luck tonight. did you hear about the gold nugget a man found with a metal detector on a beach in australia? a nugget? it's giant. look at it. 12 pounds of gold. by onest ma estimate, worth more than half a million dollars. the man said he was trolling the beach for treasure. it's his hobby. but until now, he's never found anything more valuable than bottle caps. and, guess who showed up on twitter today with a new account? it's michelle obama. her birthday. she turns 49. and look at this. she tweeted a photo with a new look. she has bangs.

and there's someone else who was celebrating her birthday today. and here is a clue. listen, from long ago. >> what's your name? >> beatrice ann hinam. and i like my name. >> that was 8-year-old betty white, on a radio show, her first job. today, she turns 91. still working, and we say happy birthday, thank you for being our friend. happy one, betty. and we love it when you're our friends and you send us the things you see all day for our "instant index." tweet them to me @dianesawyer. and coming up, the world loses a cultural icon, dear abby. do you know the most surprising advice she ever gave? abby. do you know the most surprising abby. do you know the most surprising advice she ever gave? that i e me for the first week... i'm like...yeah, ok... little did i know that one week later i wasn't smoking. [ male announcer ] along with support, chantix is proven to help people quit smoking. it reduces the urge to smoke.

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>>d finally and finally tonight, for decades, she was your straight-talking, funny friend, even if you never knew her real name. dear abby, the pioneering queen of salty advice. well, today, the woman who was really pauline phillips, died at the age of 94. and abc's david wright tells us about the column that changed a culture. >> reporter: she was google and groucho all in one. delivering wise one-liners in answer to any question. a reader once asked, is it possible to get pregnant under water? her response, not without a man. her audience was bigger than oprah's. >> now, i asked her, what paper would you buy? >> i read the one that has dear abby. >> oh! >> reporter: fozzie bear's favorite, dexter's, too. >> dear abby, i'm a serial killer and need advice. >> reporter: because dear abby always judged problems with common sense -- without judging

her readers too harshly. >> i'm a hillsborough housewife. i didn't have a social security number. i never worked a day in my life. >> reporter: pauline phillips told larry king she got her big break when she barged into the editor's office at "the san francisco chronicle." >> he said, don't call us, we'll call you. leave your name at the desk. >> reporter: she started the very next day. that was 1956. three months earlier, her twin sister had been hired to write a similar column for "the chicago tribune." dear abby and ann landers -- really the friedman sisters of sioux city, iowa -- would go on to be rivals for the rest of their careers. her frank advice was sometimes shocking in its day. 1970. dear abby, recently our 21-year-old daughter came out to us and told us she was in love with another girl. dear mother, if your daughter is happy with what she is, then you who profess to love her must accept her as she is or not at all. dear abby changed with the times and helped america change, too. david wright, abc news, los

angeles. >> and she had a rule to live by. she said it in 1964, simple. "the purpose of life is to amount to something and have it make some difference that you lived at all." we thank you for watching. we're always working to bring you the latest at abcnews.com. and "nightline" at its later, new time tonight, 12:35 a.m. a steady stream of people getting $10 flu shots. >> a south bay woman claims an intruder tried to steal her 3-year-old girl admits she made it up. >> a local woman's role in an upcoming presidential

inauguration she claims with saving her life. >> this is part of their political speech. they're try tok advocate a clothing optional life style. >> they took off shirts and filed brief wtz court. tonight and only in san francisco, a battle over the right to bare all. good evening, i'm dan ashley. >> the group is trying to get the federal court to overturn the ban on public nudity, scheduled to take affect next month. the city wants the case tossed. abc news joins us live from the federal court house with the story. carolyn? >> well, it began with supervisor scott weiner who says his constituents complained two years about a group of naked guys hanging out in the castro neighborhood. he convinced colleagues on the board to enact this ban, taking affect february 1 unless today's legal challenge is successful.

anyone who visits the federal building knows it's almost always cold and windy. this time, they're stripping down to protest the stripping away of what they consider a civil liberty. this is like asking a gay person 20, 30 years ago. why is it important to you to be gay? >> george davis is a plaintiff in this lawsuit, asking a judge to step n last month, san francisco supervisors passed a measure prohibiting most displays of public nudity. the attorney says it's a violation of free speech. >> my client has been for some time, before this ordinance this, is part of their political speech. they're view is a clothing openingal life style. >> the judge pointed out that the supreme court gives local governments some authorities in regulating morals